FTC's rule banning fake online reviews goes into effect
As of Monday, a new federal regulation prohibiting fake online reviews is officially in effect. The Federal Trade Commission (FTC) first announced the rule in August, targeting the sale or purchase of deceptive reviews. Under this rule, the FTC can now impose civil penalties on violators who knowingly engage in fraudulent review practices.
“Fake reviews not only mislead consumers, but they also disrupt fair competition by steering business away from honest companies,” said FTC Chair Lina Khan during the announcement. She emphasized that the rule aims to “protect Americans from being deceived, hold businesses accountable for unfair practices, and promote integrity in the marketplace.”
The regulation explicitly prohibits creating, purchasing, or promoting reviews from non-existent individuals, AI-generated sources, or those misrepresenting real customer experiences. It also bars businesses from using insiders to post misleading reviews or from threatening or intimidating others through false accusations or baseless legal claims.
Consumers are encouraged to report any violations at https://reportfraud.ftc.gov.
source: https://abcnews.go.com/US/wireStory/ftcs-rule-banning-fake-online-reviews-effect-115009298
“Fake reviews not only mislead consumers, but they also disrupt fair competition by steering business away from honest companies,” said FTC Chair Lina Khan during the announcement. She emphasized that the rule aims to “protect Americans from being deceived, hold businesses accountable for unfair practices, and promote integrity in the marketplace.”
The regulation explicitly prohibits creating, purchasing, or promoting reviews from non-existent individuals, AI-generated sources, or those misrepresenting real customer experiences. It also bars businesses from using insiders to post misleading reviews or from threatening or intimidating others through false accusations or baseless legal claims.
Consumers are encouraged to report any violations at https://reportfraud.ftc.gov.
source: https://abcnews.go.com/US/wireStory/ftcs-rule-banning-fake-online-reviews-effect-115009298
